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welcome this is lloyd lofton today were going to talk about an agency distribution agreement an agency distribution agreement creates a fiduciary relationship between the principal and the agent and it binds the principle to any later agreements that the agents might make as if the principal had personally made the agreement this agreement could have applied authority you know kind of like giving your credit card to someone to use and then you want to make sure you use the equal dignity rule that requires the agency agreement to be in writing if a later agreement of the agent would be in writing with a client so an agent is different from a distributor a distributor would buy the stock from a supplier from the principal then sell it to their own customers at a markup whereas an agent would find a customer for the distributor and the principal would sell it to their customers directly so today we talked about an agency distribution agreement
